Will China Start to Buy Iranian Oil with Gold?

By Gordon G. Chang

Beijing is planning to avoid U.S. financial sanctions on Iran by paying for oil with gold.  China’s imports of the metal are Already Large, and you can guess what additional purchases are going to do to prices.

On the last day of 2011, President Obama signed the National Defense Authorization Act for Fiscal Year 2012.  The NDAA, as it is called, attempts to reduce Iran’s revenue from the sale of petroleum by imposing sanctions on foreign financial institutions conducting transactions with Iranian financial institutions in connection with those sales.  This provision, which essentially cuts off sanctioned institutions from the U.S. financial system, takes effect on June 28.

The NDAA gives the president the power to waive the sanctions depending on the availability and price of supplies from non-Iranian sources.  He can also exempt financial institutions from countries that have significantly cut back purchases of Iranian petroleum.  Last month, the State Department announced waivers for Japan and ten European countries.  China, which has received American waivers in the past under other Iran legislation, is now Tehran’s largest oil customer and investor as well as its largest trading partner.  Given the new mood in Washington, Beijing cannot count on getting more exceptions in the future.

Continue reading the article over at goldsilver.com by clicking here.

4 comments to Will China Start to Buy Iranian Oil with Gold?

  • Ben

    Whoa…that would start the death knell for the petro dollar/dollar…wait..I thinkk it is already happening…:)

  • Rainmaker

    What China will do is trade in Yuan, redeemable in gold. Thats the play for them. That way they can continue the cenral bank ponzi, but will still ahve adequate reserves and production that no one will care. While they are doing this, they are dumping dollars and will not renew any future rollovers. That assures a slow death to the petro dollar and puts their currency as the new reserve. Watch TPTB claim victory for convincing the Chinese to strengthen the Yuan while we devalue the dollar. They will tell all the sheeple how good this was for trade, but in reality, it is a huge increase in the standard of living for the Chinases people and a huge decline for the American public. Not only that, but the world is going to be pissed off because all our paper instruments are valueless, which will be viewed world wide as a massive default. Teach your children Mandarin or Cantonese, especially the girls. I heare they have a shortage in the east.

  • “Teach your children Mandarin or Cantonese, especially the girls. I heare they have a shortage in the east.”

    Yup, ratio of 120:100 male to female in some parts of China. A ‘side effect’ of the one-child policy. The culture is that the eldest male stays at their parents home and moves his wife in. With no pension schemes this son is the ‘retirement’ fund. The ‘side effect’ is therefore the aborting or dumping of female babies. Very sad.

    BTW: Ne how ma? Wo sher ingwo ren, ne na? :-)

    Best phrases in China:
    Tin bu dong: I don’t understand what I’m hearing
    Can bu dong: I don’t understand what I’m seeing
    Ta gwailer: Too expensive
    Jigger do showw chen: How much is this?

    Wo hai ne: I love you

    :-)

    I lived there, I’ve ‘survival’ Manadarin. Thing is, may Chinese – esp the older generation – use local diallect and not mandarin.

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